Reasons For China'S Online Game Industry To Enter The Bottleneck Stage

After more than 10 years of rapid development, China's online gaming industry has finally entered the bottleneck stage.

Starting from the 2009 Q3 earnings report of all listed online games companies, the online games industry has bid farewell to the growth rate of 50%-200% before entering the stage of steady growth and stagnation.

And have the advantage of platform.

According to the monitoring data of China's online game market, which is about to be released in the second quarter of 2010, according to AI's consultation, the size of the online game market is expected to be 7 billion 340 million yuan, a decrease of 1.8% over the same period, an increase of 8.8%. over the same period. The Chinese online game market suffered the first decline in the market size in the current quarter, which is an unfavorable signal for the whole market. After experiencing the period of listing and growth, the network game market has its first bottleneck period.

With the release of Q2 quarterly earnings in 2010, all listed online games companies directly show the huge financial pressure faced by online games companies in the bottleneck period.

Beginning in the middle of 2009, the online game market began to send out the signal of adjustment. After that, the earnings of all online games confirmed that online games are gradually leaving the stage of high-speed growth.

In the past, the impression that "money is more than people is stupid" is changing. In 2010, Q1 and Q2's earnings showed that this is not a short-term exploration, but a collective growth of the online gaming industry.

China

1, the online games industry's long-term bad growth naturally fell back.

From two thousand years or so, it has entered the high-speed growth online game industry. It is the capital star of the entire Internet industry. It has also been born as a powerful online game company such as the grand NetEase. However, behind the rapid growth, there are hidden diseases such as lack of originality, lack of innovative plot and so on. These are not obvious in the golden period of online games development. But when the online games market comes to the bottleneck stage, many chronic diseases become the shackles that restrict the development of the online game industry.

2, it comes from the challenges of social games (including web games).

Since 2009, the social game market has been booming in the whole country, such as stealing vegetables and parking.

The sudden outbreak of social games has partly squeezed the market growth of online games.

3, with regulatory tightening, game makers will pay higher regulatory costs and no longer be able to sell content related to pornography, violence and gambling to make profits, which are precisely the links that attract users and generate profits.

{page_break}

After the Internet game industry entered the bottleneck stage, the market began to change.

1, the online games companies that used to make money began to polarize.

The online games enterprises began to split up gradually, and the market share of the game operators of Tencent, Sohu, NetEase and other representatives increased slightly, while the second army represented by the giants such as nine cities grew stagnant or even declined.

At present, Tencent, Sohu, NetEase and other online games have not been affected too much because they have a stable user base and a rich platform for promotion. The trend of development is continuously optimistic.

2, the promotion expenses of online games enterprises are sharply reduced.

2010Q2 China's game operators' online advertising scale was 133 million, down 29.4% from the same period last year, down by 13.7%, and the overall online advertising market was flagging.

Faced with the negative growth of quarterly revenue and fierce competition in product content, the major online game operators have not expanded their advertising budget, but instead are lowering their own cost.

The extreme case is that the perfect time and space cut off more than 2000 Games promotion personnel.

3, the game operators are facing the situation of product line aging and subsequent weakness.

4, game executives leave frequently or project team job hopping becomes the challenge that every game company has to face.

5, the overall cost of online games enterprises is rising. From product research and development to talent storage, as well as game promotion and supervision, the overall operation cost of the industry is listed. It is a must for all online games companies, which have restricted the bottleneck of the online games enterprises and the rapid growth.

6, diversification is uncertain.

In early August 2010, Vietnam's Ministry of information and communications issued an interim decree: suspension of new game licenses.

This is even worse for the online game industry, which hopes to diversify overseas exports.

Although it is only a temporary move of a country in Vietnam, it is also a vigilance to the domestic Internet travel enterprises.

And the cool 6 network of the grand pformation, from the Q2 earnings report, is still losing tens of millions of dollars, and its earnings remain at the level of millions of dollars.

Whether in the sea or in other areas, online games companies are facing enormous challenges and uncertain prospects.

The online games industry, which has entered the bottleneck stage, is full of uncertainty.

China's online games are increasingly demanding a genuine online game to give the depressed market a shot in the arm.

But in another way of thinking, it also reduces the temperature of online games which seem to have some high fever. It is a rare buffer period for the online games industry, the desire to enter the online games and the bustle. It can be well considered how the future of China's online game industry should be outlined.